This study relating to the business and marketing analysis for the newly proposed luxury apartment complex which situated in the Colombo city. Report may include the introduction to the industry and project, environmental analysis, segmentation and targeting methods. Finally report observe about the pricing strategy, promotional strategy and the benefits of the apartment.
Introduction to the Industry
Real estate industry can be identify as the building or land or any other property which cannot movable. The real estate industry may vary on economic systems of local and national although which dependable under the reason which, always people want homes and businesses and every time they need a space or a place for that purpose. Basic activities of the industry as below.
- Capital & Investments
- Appraisal Development
- Property Management
- Asset Management
Introduction to the project and company
The proposed project will be the Sri Lanka’s biggest real estate project or number one luxury apartment building project. After completed the project it will be the tallest building in Colombo. This is a commercial and residential construction with 68 floors and 240m. The building location near to Beira Lake and with 2 acres land. The building residents can experience 270 degree views of Indian Ocean and Beira Lake. This project contains more than 400 luxury apartments. The project designing by world class architecture. And the design of the building which one tower is leaning on other tower will added moderate look to the project.
The company of Indocean Developers (Pvt) Ltd, India is recognized as a very reputed company in the real estate industry and which owned by luxurious project in all over the world.
Influence of the environmental factors
According to the studies of Palmer and Hartley, (1999, 32) below four factors can be identified as the basic factors of micro environment.
Customers are the most important factor in any business. Hence in this industry they cannot construct the project on own preferences. Company need to recognize the consumer requirements. As this is luxury housing apartment it need to identify the customer base and their requirements. To attract the potential customers towards the project company need to develop it in luxuries way and identify the buying behavior of the customers.
In Sri Lankan real estate industry competition remains very high due to there are so many projects are developed and still developing. So the competition to the proposed apartments is very high due to there are so many luxury apartments in the Colombo city and nearly. Some of them are Havelock city, Trillium Residencies, Grand Hyatt Colombo, The Emperor, Diamond Tower and NEB Tower. All those are already constructed and under construction with great architectural strategies.
Marketing intermediaries plays a vital role in Sri Lanka’s real estate industry. Selecting a best intermediary partner is very critical task. Brokers and agent have some kind of equality in equality in the role as intermediaries. But agents take as permanent basis between buyers and sellers while brokers are taken as temporary basis. Finding a customer from local and international market and make them as residents of the apartment is huge task.
Cultural and demographic changes affect who, when, and how people can buy properties. Circumstances such as population growth, demographics, and environmental factors affect prices for buying property. Also the environment related issues like pollution may arise from the project due to proposed building is situated near the Beira Lake and Indian Ocean. Hence, public environment does not allow such kind of apartment’s projects. But the high income earning category may willing to live in the apartments like this.
Companies need to be aware on indicators of a nation’s prosperity. The economic environment greatly defines the demand of the market, from customers and their ability to make purchases. As this is luxury apartment prices also very high. Due to the country’s high inflation rate it will difficult to local customers to buy apartments by on cash. But there are positive results too. This project generate number of new job opportunities and when attracting foreign customers they may take foreign currency to the country.
These influences are related to politics, politicians, and the government. In real estate, laws, taxes, and inflation rates can affect the prices of houses. The government rules and regulations towards the real estate industry are to be strictly followed. With the assistant of the government of Sri Lanka many more foreign investors may invest on their projects in Sri Lanka as developing company invest on proposed apartment.
The type of technology affects how people book and rent properties online. Also included are the kind of material and the method of building homes. With high technological practices of the apartment, resident’s value also need to be high and it became life very easy with luxury apartments.
The residents who will be living in these apartments are very different from the local population. Hence their culture and social status are definitely differ. So apartment need to have each and every socio cultural requirements within the apartment. As proposed apartment own a shopping mall in ground floor and sky garden in 63rd floor. Those things can attract customers due to the high class facilities.
Market segmentation and targeting
The proposal projects market segmentation become the most important part in marketing strategy. In this process company cam breakdown their large number of consumer base into some categories to easy identification and targeting. Basically there are four segmentation categories as below.
Demographic segmentation is common method to segment the market in many organizations. Here company can divide the large market into groups based on some characteristics. Those characteristics are age, gender, race, occupation, income, marital status and education. Proposed project will be a luxury apartment, thereby apartment owners will be a people with high income level. Based on the demographic segmentation high income earners are the target market of this project.
In this category sell products based on geographic areas such as region, community, countries or state. This project target for both local and international customers. And local customers who willing to live in the city of Colombo.
Psychographic segmentation basically based on the peoples life style patterns, brands, hobbies, peers influence etc. people who willing to live in this apartment need to have luxury life style pattern.
This method based on the customers behavior, sensitivity to prices, brand loyalty etc. company can recognize some customers with similar demographic characteristics but they different from behavioral characteristics.
Segmenting for business consumers often has connection but commonly comprises geographic, customer type and behavior based segmentation strategies. Geographic segmentation method is comparable to that with consumer segmenting. According to the proposed project, demographic and geographic segmentation methods can be taken as the most suitable segmentation methods to the project. Because the luxury apartments like this project are generally purchasing by high income earning people who have high social status. But not the middle class people in the country. And other set of people are foreign customers. They also willing to buy apartments like this than living in the normal houses. Because these apartments will create in international standard. Due to that reasons targeting need to be done based on these things to make a successful marketing strategy.
The organization need to decide the targeting strategy that will highlight the methodology of targeting consumers. There are some approaches to concentrate targeting such as single market approach, multiple market approach and combined market approach. Generally, it is better to target above specified segments with an appropriate solution to achieve the target market.
There can be lot of benefits on selecting above segmentation methods. To evaluate the effectiveness of the segmentation there can be some limitation as below.
- Substantial – selected market segment need to be sizeable enough for make the profits from selling apartments.
- Measurable – The size, purchasing power, and profiles of the market segments can be measured. Certain segmentation variables are difficult to measure.
- Accessible – market segment need to be effectively reach to the customers of the apartments.
- Differential – All segments should be different from each other and should not be overlap.
- Actionable – The segments should be such that effective marketing programs can be implemented.
Key features and benefits of proposed apartment complex
Proposed building is architecturally fabulous with 68 floors in vertical tower and 63 floors in sloping tower. There are so many benefits in both two towers.
- Driveways and parking facilities with maximum capacity
- High speed elevators with two service elevators
- Proper electrical installation system with circuit protection
- Adequate lightning protection system
- Central, chilled water air-conditioning with individual indoor units for bedrooms, living and dining areas
- Standard security systems
Both towers will have different types of Features to attract more consumers towards the apartment.
- Sky garden
- Green Spaces
- Leisure facilities
- Infinity pool
- Activity pools
The land for the proposed building situated in heart of the Colombo city near to Beira Lake and the size of the land will be 40,000sq ft. according to the plan ground floor consists with shopping mall. To reduce crowding, traffic will be diverted via a new admittance road. According to the traffic analysis conducted, travel time will increase by a nominal 14 seconds.
Businesses plan and propose to use premium pricing strategy as this is new creation with unique competitive advantages. Prices of this strategy will higher than the competitors. As this project in the initial stage of life cycle this strategy will be very important.
Create a proper Website
In today’s context most of the people tend to buy products through online and same as for the home buying as well. So having an updated and proper website is must to attract customers. This need to include all information’s, great photos, virtual tours also google maps.
Automate the CRM
It is very important to capture the information accurately and follow them. Hence when automating the customer relationship management it will reduce the time, make more time free and it is easy to follow the information. There are so many tools to automate the CRM effectively.
Email Marketing Campaigns
As the target market is high class people email advertising will be very effective due to they are working lot with the email. Company can be use email marketing systems to do this in an effective manner.
In today’s business context real estate become one of the biggest industry. Due to that this marketing study conducted the marketing analysis for newly proposed luxury apartment complex in heart of the Colombo. Firstly analyzed environmental analysis in micro and macro environment. Then selected a method to segmentation and targeting. Finally the report explained the key benefits, features, pricing strategy, location and the promotional methods.
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